What Is a Sinking Fund?
A sinking fund is a justification fund containing money set aside or saved to pay off a liability or large expense.
Difference between emergency fund and sinking funds
All in all, an emergency fund is for the unknown, and a sinking fund is for the known.
The Cash Envelope System
Take a few minutes and think of everything you spend money on during the month, and write it down. Then put a check mark next to everything you can pay for in cash. Those my dear are your categories.
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“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” – Will Smith
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